Goods purchased on credit is an example of ___________.

Increase in Asset & Owner's Liability

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Decrease in Asset & Owner's Liability

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Increase in Liability & Owner's Liability

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Increase in assets and liabilities

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Increase in Liability & Decrease in Owner's Liability

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Solution

The correct option is D Increase in assets and liabilities
Goods purchased on credit will result in increase in assets as well as increase in liability

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Similar questions

Q. Which of the following, equations properly represents a derivation of the fundamental accounting equation?
(a) Assets + Liabilities = Owner Equity
(b) Asset = Owner Equity
(c) Cash = Assets
(d) Assets - Liabilities = Owner Equity

Q. A summary record of the changes in a particular asset, liability or owners equity is known as _________.

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. If the owners equity is Rs.

80, 000

and external liability Rs.

40, 000

, Cash in hand Rs.

20, 000

, the other assets of the firm will be ____________.

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Goods purchased on credit is an example of ___________.

The correct option is D Increase in assets and liabilitiesGoods purchased on credit will result in increase in assets as well as increase in liability

The correct option is D Increase in assets and liabilities
Goods purchased on credit will result in increase in assets as well as increase in liability